A credit report is a summary of how you pay your financial obligations. It begins when you first apply to borrow money. Lenders use it to verify personal information about you, your borrowing activity and your repayment history. It allows potential lenders to evaluate risk – based on your past behaviour, if they lend you money now, are you likely to repay that money or not.
While a credit report is a summary based on what you have done in the past, your credit score is based on information in your credit report and is used by lenders to predict the likelihood that you will repay future debt. Your credit score can change frequently.
There are 2 main consumer credit bureau companies in Canada, Equifax and TransUnion, and they may have different information about you. Everything pertaining to regular consumer debt, good or bad, stays on your credit report for 6 – 7 years depending on which Province you live in. For more information about credit report details and ratings, consult the web sites for each of the credit bureau companies.